Company No.

1776304

ANNUAL REPORT AND FINANCIAL STATEMENTS

CDB (U.K.) LIMITED

YEAR ENDED 30 SEPTEMBER 2008

*L2ZTABZZ
LD5 30/07/2009
COMPANIES HOUSE
CDB (U.K.) LIMITED

Contents

Corporate information

Report of the Directors

Statement of directors' responsibilities

Auditors' report

Income statement

Balance sheet

Statement of changes in equity

Cash flow statement

Notes to the financial statements

CDB (U.K.) LIMITED

Directors

D Quilligan
F G Parker
T Walsh (Appointed 19 March 2008)
J Brydie (Appointed 19 March 2008)
D Murray (Resigned 22 May 2008)

Secretary

F G Parker

Auditors

Ernst & Young LLP

1 More London Place
London, SE1 2AF

Bankers

Anglo Irish Bank Corporation Limited

10 Old Jewry
London
EC2R 8DN

Registered office

10 Old Jewry
London
EC2R 8DN

Registered number

1776304

Country of incorporation

United Kingdom
CDB (U.K.) LIMITED

REPORT OF THE DIRECTORS

The directors present their report and the audited financial statements for CDB (U.K.) Limited ('the Company') for the
year ended 30 September 2008.

1. REVIEW OF THE DEVELOPMENT OF THE BUSINESS

The Company acts as an investment holding company responsible for all subsidiary entities in the United Kingdom
and therefore acting as an intermediate holding company for most of Anglo Irish Bank Corporation Limited interests in
the U.K. During the year the Company invested in Japanese Yen Preference shares of a subsidiary company, thereby
facilitating the completion of a Japanese Yen financing arrangement by the CDB (U.K.) Limited group. This Japanese
Yen arrangement enabled the Company and its subsidiaries, to avail of low cost financing on an aftertax basis at Yen
interest rates, due to the significant difference between Sterling interest rates and Yen interest rates during the year.

2. PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the Company are low as the Company acts as a holding company and
is non-trading. The main risks is the performance of its subsidiary entities and the risk that the investment may become
impaired if an entity which the Company has invested in performs poorly thus eroding the value of the investment.
In addition, the Company is exposed to foreign exchange market risk on its foreign currency denominated monetary
asset. Further detail on the management of this risk, and the mitgation of this risk is set out in Note 19 of the audited
Financial Statements.

3. RESULTS FOR THE YEAR AND STATE OF AFFAIRS AS AT 30 SEPTEMBER 2008

The results for the year and the balance sheet at 30 September 2008 are set out, respectively, out on pages 8 and 9. The
profit after taxation for the year amounted to £60,451,672 (2007: £20,636). The increase in profits is due to foreign
exchange movements on the Japanese Yen Preference shares. Total equity amounted to £312,485,279
as at 30 September 2008 (2007: £244,033,612).

4. DIVIDEND
The directors do not propose the payment of a dividend in respect of the year ended 30 September 2008 (2007: £ Nil).

5. KEY PERFORMANCE INDICATORS

Given the limited scope and nature of the business, and that the Company is a wholly-owned subsidiary of Anglo Irish
Bank Corporation Limited ("AIBC"), the Directors are of the opinion that key performance indicators or other forms of
performance measurement are not necessary in providing an understanding of the development, performance or position
of the Company. The parent undertaking of the Company maintains an oversight of the Company's performance under
AlBC's business and governance management structures. Further details can be obtained in the Annual Report and
Accounts of AIBC at www.anqloirishbank.com/investors.

6. IMPORTANT EVENTS SINCE THE YEAR END AND FUTURE DEVELOPMENTS

Nationalisation of parent company
On 15 January 2009, the Irish Government announced its intention to take Anglo Irish Bank Corporation pic ("AIBC"),
the parent undertaking of the Company, into State ownership. AlBC's shares were subsequently suspended
from trading on the Irish and London Stock Exchanges on 16 January 2009. The Anglo Irish Bank Corporation Act 2009
which provided for the transfer of shares of AIBC to the Irish Minister for Finance, was signed into Irish law on 21 January
2009. On the same date AIBC was re-registered as a private company and its name was changed from Anglo Irish Bank
Corporation pic to Anglo Irish Bank Corporation Limited. On 29 June 2009, the Irish Government, following receipt of
European Union approval, has provided €3 billion of capital to AIBC. Further capital of up to €1 billion is available subject
to further discussions between AIBC and the Department of Finance on the terms of a debt repurchase programme
with AIBC.

Share capital
On 10 October 2008 the sterling authorised share capital of the Company was increased to £750,000,000 by the creation
of 500,000,000 ordinary shares of £1 each.

2
CDB (U.K.) LIMITED

REPORT OF THE DIRECTORS 2008 (Continued)

6. IMPORTANT EVENTS SINCE THE YEAR END AND FUTURE DEVELOPMENTS (continued)
Share capital (continued)
On 18 November 2008 the sterling authorised share capital increased to £3,750.000,000 divided into 3,700,000,000
ordinary shares of £1 each and 50,000,000 redeemable preference shares of £1 each. On 18 November 2008,
1,000,000,000 ordinary shares of £1 each were issued at par and subscribed by Anglo Irish Bank Corporation Limited,
the parent undertaking of the Company, in order to enable the Company to invest in its subsidiaries as considered
appropriate and necessary.

Japanese Yen financing an-angement

Details are given in Note 6 of the audited financial statements, of a financing arrangement, entered into in May 2008.
The arrangement was structured such that the UK group would benefit from the differential between Sterling and
Yen interest rates. The potential foreign exchange risk perspective was mitigated by an offset on the UK group's
taxation line. The arrangement had a positive impact on the UK group's profit for the year ended 30 September 2008.
The arrangement matured in December 2008 and January 2009. As part of this maturity, a Japanese Yen loan
of ¥201 billion was advanced from Anglo Irish Asset Finance pic to the Company. The strengthening of Yen against
Sterling post year end has had a net positive impact on foreign exchange revaluation on this Japanese Yen loan
and the Japanese Yen preference shares held by the Company of £455m.

Impainvent of investment in subsidiaries

The key economics indicators in the UK and mainland Europe, which are the principal operating markets of the
Company's subsidiaries or is the location of the underlying assets supporting these entities, have continued to show
a marked deterioration since 30 September 2008. These economies are expected to contract further in 2009. Whilst
the monetary and fiscal actions taken by the government and authorities are helpful, it will take some time before any
improvements as a result of monetary actions are reflected. As a result, the Company anticipates that there may be
a risk that further impairment charges on investments in subsidiaries may be incurred in 2009 and subsequent years.

Investment in Anglo Irish Asset Finance pic

On 18 November 2008 the Company invested a further £1,000,000,000 into Anglo Irish Asset Finance pic,
divided into 1,000,000,000 ordinary shares of £1 each.

7. DIRECTORS AND SECRETARY

Declan Quilligan and Gordon Parker continued to serve as directors throughout the year. Thomas Walsh and James
Brydie were appointed directors on 19 March 2008. All directors will continue in office in accordance with the articles
of association. David Murray resigned as director on 22 May 2008. Gordon Parker served as secretary throughout the
year. The directors and secretary had no interests in the shares of the Company during the year.

8. PARENT COMPANY
The Company is a wholly owned subsidiary of Anglo Irish Bank Corporation Limited, a company incorporated in
the Republic of Ireland.

9. DISCLOSURE OF INFORMATION TO THE AUDITORS

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit
information, being information needed by the auditor in connection with preparing its report, of which the auditor is
unaware. Having made enquiries of fellow directors, each director has taken all steps that he ought to take as a
director in order to make himself aware of any relevant audit information and to establish that the auditor is aware of
that information.

3
CDB (U.K.) LIMITED

REPORT OF THE DIRECTORS 2008 (Continued)

10. GOING CONCERN

Anglo Irish Bank Corporation Limited, the parent undertaking of the Company, has agreed to provide financial support
to the Company as would be required to allow the Company to meet its future obligations as they fall due for the
foreseeable future and until at least 31 July 2010.

11. INDEPENDENT AUDITORS

A resolution for the reappointment of Ernst & Young LLP as auditors of the Company is to be proposed to all
members by ordinary resolution during the next period for appointing auditors.

ON BEHALF OF THE BOARD:

REGISTERED OFFICE:

10 Old Jewry
London
EC2R 8DN F.G Parker - Director
Date: 28 July 2009

4
CDB (U.K.) LIMITED

STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF

THE REPORT OF THE DIRECTORS AND FINANCIAL STATEMENTS

The directors are responsible for preparing the annual report and the financial statements in accordance with
applicable United Kingdom law and International Financial Reporting Standards (IFRS) as adopted by the European
Union.

Company Law requires the directors to prepare financial statements for each financial year which give a true and fair
view of the state of affairs of the Company and of the profit and loss of the Company for that year. In preparing those
financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- present information, including accounting policies, in a manner that provides relevant, reliable, comparable and
understandable information;

- provide additional disclosures when compliance with the specific requirements of IFRS is insufficient to enable users
to understand the impact of particular transactions, other events and conditions on the entity's financial position and
financial performance; and

- state that the company has complied with IFRS, as adopted by the European Union, subject to any material departures
disclosed and explained in the financial statements.

The directors are required to prepare the financial statements on the going concern basis, unless it is not appropriate.
The directors have received confirmation from the parent undertaking of the Company, Anglo Irish Bank Corporation
Limited, of its continued financial support to allow the company to meet its future obligations as they fall due for
the foreseeable future and until at least 31 July 2010. Consequently the Financial Statements continue to be
prepared on the going concern basis.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy
at any time the financial position of the Company and which enable them to ensure that the financial statements
comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably
open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The directors confirm that, to the best of their knowledge, they have complied with these requirements in preparing
the financial statements, including preparation of these financial statements in accordance with IFRS as adopted by
the European Union. Under applicable laws and regulations, the directors also have responsibility for preparing a
Directors' Report, as set out on pages 2 to 4 that complies with that law and those regulations.

5
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
CDB (U.K.) LIMITED

We have audited the Financial Statements of CDB (U.K.) Limited for the year ended 30 September 2008
which comprise the Income Statement, the Balance Sheet, the Statement of Changes in Equity, the Cash Flow
Statement and the related notes 1 to 24. These Financial Statements have been prepared under the accounting policies
set out therein.

This report is made solely to the Company's members, as a body, in accordance with Section 235 of the Companies
Act, 1985. Our audit work has been undertaken so that we might state to the Company's members those matters we are
required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our
audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and independent auditors

The Directors' responsibilities for preparing the Financial Statements in accordance with applicable United Kingdom
law and International Financial Reporting Standards (IFRS) as adopted by the European Union as set out in the
Statement of Directors' Responsibilities.

Our responsibility is to audit the Financial Statements in accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the Financial Statements give a true and fair view and are properly prepared
in accordance with the Companies Act 1985. We also report to you whether the information given in the Director's
Report is consistent with the Financial Statements.

In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not
received all the information and explanations we require for our audit, or if information specified by law
regarding directors' remuneration and other transactions with the Company is not disclosed.

We read the Directors' Report and consider the implications for our report if we become aware of any apparent
misstatements.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the
Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and
disclosures in the Financial Statements. It also includes an assessment of the significant estimates and judgements
made by the directors in the preparation of the financial statements, and of whether the accounting policies are
appropriate to the Company's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the Financial
Statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming
our opinion we also evaluated the overall adequacy of the presentation of information in the Financial Statements.

6
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
CDB (U.K.) LIMITED (Continued)

Opinion

In our opinion:

- the Financial Statements give a true and fair view, in accordance with IFRS as adopted by the European Union, of
the state of affairs of the company as at 30 September 2008 and of its profit for the year then ended;

- the Financial Statements have been properly prepared in accordance with the Companies Acts 1985; and

- the information given in the Directors' Report is consistent with the Financial Statements.

Ernst & Young LLP

Registered Auditor
1 More London Place
London, SE1 2AF

Date:

7
CDB (U.K.) LIMITED
Income statement
For the year ended 30 September 2008
2008 2007

Notes £ £

Interest and similar income 3 5,131,954

Interest and similar expense 4 (25,452,911) -

Net interest income (20,320,957) -

Investment income 5 73
Foreign exchange gains on monetary asset 6 76,401,929
Bank charges (35)

Other operating income 76,401,894 73

Operating profit before impairment losses 56,080,937 73

Impairment losses 7 (3,000,000) -

Profit before taxation 53,080,937 73

Taxation Credit 10 7,370,735 20.563

Profit for the year 60,451,672 20,636

The notes on pages 12 - 31 form part of these Financial Statements.

8
CDB (U.K.) LIMITED
Balance sheet
As at 30 September 2008 2008 2007
Notes £ £

Non - current assets

Investment in subsidiaries - at cost 11 247,788,253 245,060,844
Investment in subsidiaries - monetary asset 12 1,060,844,285
Quoted investments 13 977
1,308,632,538 245,061,821

Current assets
Other assets 14 9,950,337 65,378
Prepayments and accrued income 281 281
9,950,618 65,659

Total assets 1,318,583,156 245,127,480

Current liabilities
Other liabilities 15 1,227,350
1,227,350
Non - current liabilities
Loans and borrowings 16 1,004,870,527 1,093,868

Total liabilities 1,006,097,877 1,093,868

Shareholders' equity
Share capital 18
Retained profits / (losses)
Shareholders' equity 312,485,279 244,033,612
Total shareholders' equity and liabilities 1,318,583,156 245,127,480

The notes on pages 1 2 - 3 1 form part of these Financial Statements.

ON BEHALF OF THE BOARD:

F.G Parker - Director

Date: 28 July 2009

9
CDB (U.K.) LIMITED
Statement of changes in equity
For the year ended 30 September 2008

Share Retained
Capital Profits Total
£ £ £

Balance at 1 October 2006 123,085,000 (1,772,024) 121,312,976

Profit for the year 20,636 20,636

Share capital issued 122,700,000 122,700,000

Balance at 1 October 2007 245,785,000 (1,751,388) 244,033,612

Profit for the year 60,451,672 60,451,672

Share capital issued 7,999,995 7,999,995

Balance at 30 September 2008 253,784,995 58,700,284 312,485,279

The notes on pages 1 2 - 3 1 form part of these Financial Statements.

10
i
CDB (U.K.) LIMITED
Cash flow statement
For the year ended 30 September 2008

2008 2007
Notes £ £

Cash flows from operating activities

Profit before taxation 53,080,937 73
Non-cash items 17 4,363,726 (73)
57,444,663

Changes in operating assets and liabilities:

Net increase in other assets (1,299,324)
Net increase in other liabilities 1,227,350
Net increase in loans and borrowings 1,003,776,659 2
Net cash flows from operating activities before taxation 1,061,149,348 2

Tax - group relief from parent undertaking 6,007,009 -

Net cash flows from operating activities 1,067,156,357 2

Cash flows from investing activities

Investment in subsidiary undertakings - at cost (5,727,409) (122,700,002)
Investment in subsidiary undertakings - monetary asset (1,060,844,285)
Redemption of government bond 977
Net cash flows (utilised in) investing activities (1,066,570,717) (122,700,002)

Cash flows from financing activities

Proceeds of equity share issue 7,999,995 122,700,000
Net cash flows from financing activities 7,999,995 122,700,000

Net increase / (decrease) in cash and cash equivalents 8,585,635

Opening cash and cash equivalents
Closing cash and cash equivalents 17 8,585,635

The notes on pages 1 2 - 3 1 form part of these Financial Statements.

11
 CDB (U.K.) LIMITED

Notes to the financial statements

1 Accounting policies

The significant accounting policies adopted by the Company are set out below.

1.1 Authorisation of financial statements and compliance with IFRS

The Financial Statements of the Company for the year ended 30 September 2008 were authorised for issue by the board
of directors and the balance sheet was signed on the board's behalf by Gordon Parker on 28 July 2009. The Company
is a private limited Company registered in England and Wales.

The Financial Statements have been presented in accordance with International Accounting Standards and International
Financial Reporting Standards (collectively 'IFRS'), as adopted by the European Union and applied in accordance with the
Companies Act 1985 and applicable at 30 September 2008.

1.2 Basis of preparation

The Financial Statements have been prepared on the going concern basis, under the historical cost convention, as modified
by the revaluation of certain assets and liabilities to the extent required or permitted under accounting standards as set out
in the relevant accounting policies.

The preparation of Financial Statements in conformity with IFRS requires management to make estimates and assumptions
that affect the reported amounts of certain assets, liabilities, revenues and expenses, and disclosures of contingent
assets and liabilities. Since management's judgement involves making estimates concerning the likelihood of future
events, the actual results could differ from those estimates. Some estimation techniques involve significant amounts of
management judgement, often in areas which are inherently uncertain. Further detail is provided in Note 1.13 of the
of the Accounting Policies.

The Financial Statements are prepared on a going concern basis, as Anglo Irish Bank Corporation Limited, the
parent undertaking of the Company, has agreed to provide financial support to the Company as would be required to
allow the Company to meet its future obligations for the foreseeable future and until at least 31 July 2010.

Certain items in these Financial Statements have been reclassified to allow for the appropriate presentation in accordance
with IFRS.

1.3 Adoption of new accounting standards

From 1 October 2007 the Company adopted the following standards:

- IFRS 7 - Financial Instruments: Disclosures;

- Amendment to IAS 1 - Capital Disclosures;
- IFRS 7 Amendment - Reclassification of Financial Instruments

Recent amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments:
Disclosures permit the reclassification of certain financial instruments from held for trading and available-for-sale
financial assets. The Company has not made any such reclassifications.

1.4 Investment income recognition

Investment income comprises income and realised gains from quoted investment holdings. Income is accounted for on a
receivable basis. Interest is accrued up to the balance sheet date. Realised gains or losses represent the
difference between proceeds of disposal and original cost less any prior provision for permanent diminution in
value.

1.5 Interest income and expense recognition

Interest income and expense are recognised in the income statement for all interest-bearing financial instruments
using the effective interest rate method.

12
CDB (U.K.) LIMITED
Income statement
For the year ended 30 September 2008
2008 2007
£ £
Notes

Interest and similar income 3 5,131,954

Interest and similar expense 4 (25,452,911) -

Net interest income (20,320,957) -

Investment income 5 73
Foreign exchange gains on monetary asset 6 76,401,929
Bank charges (35)

Other operating income 76,401,894 73

Operating profit before impairment losses 56,080,937 73

Impairment losses 7 (3,000,000) -

Profit before taxation 53,080,937 73

Taxation Credit 10 7,370,735 20,563

Profit for the year 60,451,672 20,636

The notes on pages 1 2 - 3 1 form part of these Financial Statements,

n
CDB (U.K.) LIMITED
Balance sheet
As at 30 September 2008 2008 2007

Notes £ £

Non - current assets

Investment in subsidiaries - at cost 11 247,788,253 245,060,844
Investment in subsidiaries - monetary asset 12 1,060,844,285
Quoted investments 13 977
1,308,632,538 245,061,821

Current assets
Other assets 14 9,950,337 65,378
Prepayments and accrued income 281 281
f; 9,950,618 65,659

Total assets 1,318,583,156 245,127,480

Current liabilities
1,227,350
Other liabilities 15 1,227,350 -

Non - current liabilities 1,004,870,527 1,093,868

Loans and borrowings 16 1,006,097,877 1,093,868

Total liabilities
253,784,995 245,785,000
Shareholders' equity 58,700,284 (1,751,388)
Share capital 18 312,485,279 244,033.612
Retained profits I (losses) 1,318,583,156 245,127,480
Shareholders' equity
Total shareholders' equity and liabilities
The notes on pages 1 2 - 3 1 form part of these Financial Statements.
ON BEHALF OF THE BOARD:

F.G Parker - Director

Date: 28 July 2009

 CDB (U.K.) LIMITED
Statement of changes In equity
For the year ended 30 September 2008

Share Retained
iv Capital Profits Total
£ £ £

Balance at 1 October 2006 123,085,000 (1,772,024) 121,312,976

Profit for the year 20,636 20,636

Share capital issued 122,700,000 122,700,000

Balance at 1 October 2007 245,785,000 (1,751,388) 244,033,612

r

Profit for the year 60,451,672 60,451,672

Share capital issued 7,999,995 7,999,995

Balance at 30 September 2008 253,784,995 58,700,284 312,485,279

The notes on pages 12-31 form part of these Financial Statements.

v,

i •} '

u.'
-

t
 CDB (U.K.) LIMITED
Cash flow statement
For the year ended 30 September 2008

2008 2007
Notes £ £

Cash flows from operating activities

Profit before taxation 53,080,937 73
~ Non-cash items 17 4,363,726 (73)
57,444,663

Changes in operating assets and liabilities:

Net increase in other assets (1,299,324)
Net increase in other liabilities 1,227,350
Net increase in loans and borrowings 1,003,776,659 2
Net cash flows from operating activities before taxation 1,061,149,348 2

r
Tax - group relief from parent undertaking 6,007,009 -

Net cash flows from operating activities 1,067,156,357 2

Cash flows from investing activities

Investment in subsidiary undertakings - at cost (5,727,409) (122,700,002)
Investment in subsidiary undertakings - monetary asset (1,060,844,285)
Redemption of government bond 977
Net cash flows (utilised in) investing activities (1,066,570.717) (122,700.002)

Cash flows from financing activities

Proceeds of equity share issue 7,999,995 122,700,000
Net cash flows from financing activities 7,999,995 122,700,000

Net increase / (decrease) in cash and cash equivalents 8,585,635

Opening cash and cash equivalents
Closing cash and cash equivalents 17 8,585,635

The notes on pages 1 2 - 3 1 form part of these Financial Statements.

 CDB (U.K.) LIMITED

Notes to the financial statements

1 Accounting policies

The significant accounting policies adopted by the Company are set out below.

1.1 Authorisation of financial statements and compliance with IFRS

The Financial Statements of the Company for the year ended 30 September 2008 were authorised for issue by the board
of directors and the balance sheet was signed on the board's behalf by Gordon Parker on 28 July 2009. The Company
is a private limited Company registered in England and Wales.

The Financial Statements have been presented in accordance with International Accounting Standards and International
Financial Reporting Standards (collectively 'IFRS'), as adopted by the European Union and applied in accordance with the
Companies Act 1985 and applicable at 30 September 2008.

1.2 Basis of preparation

The Financial Statements have been prepared on the going concern basis, under the historical cost convention, as modified
by the revaluation of certain assets and liabilities to the extent required or permitted under accounting standards as set out
in the relevant accounting policies.

The preparation of Financial Statements in conformity with IFRS requires management to make estimates and assumptions
that affect the reported amounts of certain assets, iiabilities, revenues and expenses, and disclosures of contingent
assets and liabilities. Since management's judgement involves making estimates concerning the likelihood of future
events, the actual results could differ from those estimates. Some estimation techniques involve significant amounts of
management judgement, often in areas which are inherently uncertain. Further detail is provided in Note 1.13 of the
of the Accounting Policies.

The Financial Statements are prepared on a going concern basis, as Anglo Irish Bank Corporation Limited, the
parent undertaking of the Company, has agreed to provide financial support to the Company as would be required to
allow the Company to meet its future obligations for the foreseeable future and until at least 31 July 2010.

Certain items in these Financial Statements have been reclassified to allow for the appropriate presentation in accordance
with IFRS.

1.3 Adoption of new accounting standards

From 1 October 2007 the Company adopted the following standards:

- IFRS 7 - Financial Instruments; Disclosures;

- Amendment to IAS 1 - Capital Disclosures;
- IFRS 7 Amendment - Reclassification of Financial Instruments

Recent amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments:
Disclosures permit the reclassification of certain financial instruments from held for trading and available-for-sale
financial assets. The Company has not made any such reclassifications.

1.4 Investment income recognition

Investment income comprises income and realised gains from quoted investment holdings. Income is accounted for on a
receivable basis. Interest is accrued up to the balance sheet date. Realised gains or losses represent the
difference between proceeds of disposal and original cost less any prior provision for permanent diminution in
value.

1.5 Interest income and expense recognition

Interest income and expense are recognised in the income statement for all interest-bearing financial instruments
using the effective interest rate method.

12
CDB (U.K.) LIMITED

Notes to the financial statements continued

Accounting policies continued

1.5 Interest income and expense recognition (continued)

The effective interest rate method is a method of calculating the amortised cost of a financial asset or liability and of
allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts the expected future cash payments or receipts through the expected life of the financial instrument
or, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability.

The calculation includes all fees, transaction costs and other premiums and discounts that are an integral part of the
effective interest rate on the transaction.

Once an impairment loss has been recognised on an individual asset, interest income is recognised using the rate of
interest at which the estimated future cash flows were discounted in measuring impairment.

1.6 Cash and cash equivalents

For the purposes of the cash flow statement, cash comprises cash on hand and demand deposits including any loans
to the parent undertaking which acts as the Company's banker. Cash equivalents comprise highly liquid investments
that are convertible into cash with an insignificant risk of changes in value with original maturities of less than three
months.

1.7 Investments
At cost
Investments in subsidiaries are held to maturity and are reflected in the Balance Sheet at cost less provision for
permanent impairment.

Quoted

Quoted investments are stated at their market value.

Monetary asset
Investments which feature a right to receive a fixed or determinable number of units of currency are treated as a monetary
asset. Where these are in a foreign currency they are translated at the spot rate of exchange on acquisition
and then re-translated at each balance sheet date as further set out in Note 1.11 of the Accounting Policies.
1.8 Financial liabilities
Financial liabilities are initially recognised at fair value, being their issue proceeds (fair value of consideration received)
net of transaction costs incurred. Financial liabilities are subsequently measured at either amortised cost or fair value
through profit or loss. All liabilities, other than those designated at fair value through profit or loss, are subsequently
carried at amortised cost. Any difference between proceeds net of transaction costs and the redemption value
is recognised in the income statement using the effective interest rate method.

The classification of an instrument as a financial liability or an equity instrument is dependent on the substance of the
contractual arrangement. Instruments which carry a contractual obligation to deliver cash or another financial asset to
another entity are classified as financial liabilities. Interest on these instruments are recognised in the income statement
as an expense. Other gains and losses arising from changes in fair value are included directly in the income statement
within trading losses/profits.

13
CDB (U.K.) LIMITED

Notes to the financial statements continued

Accounting policies continued

1.9 Provisions and contingent liabilities

Provisions are recognised for present legal or constructive obligations arising as consequences of past events where it
is probable that a transfer of economic benefit will be necessary to settle the obligation, and it can be reliably estimated.

When the effect is material, provisions are determined by discounting future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

Payments are deducted from the present value of the provision and interest at a relevant discount rate is charged
annually to interest expense. Changes in the present value of the liability as a result of movements in interest rates
are included in other financial income. The present value of provisions are included in other liabilities.

Other contingencies
Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events giving
rise to present obligation where the transfer of economic benefits is uncertain and cannot be reliably measured. Contingent
liabilities are not recognised but are disclosed in the notes to the financial statements unless they are remote.

1.10 Impairment of financial assets

Provision is made for impairment of financial assets to reflect the losses inherent in those assets at the balance sheet
date.

The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a
portfolio of financial assets is impaired. A financial asset or portfolio of financial assets is impaired and impairment
losses are incurred if, and only if, there is objective evidence of impairment as a result of one or more loss events that
occurred after the initial recognition of the asset and that the estimated present value of future cash flows is less than
the current carrying value of the financial asset, or portfolio of financial assets, and can be reliably measured.

Objective evidence that a financial asset, or a portfolio of financial assets, is impaired includes observable data that
comes to the attention of the Company about the following loss events:

i. significant financial difficulty of the investee;

ii. decrease in net asset values of the investee;
iii. it becomes probable that the investee will enter bankruptcy or other financial reorganisation;
iv. observable data indicating that there is a measurable decrease in the estimated future cash flows
from a portfolio of financial assets since the initial recognition of those assets, although the decrease
cannot yet be identified with the individual financial assets in the portfolio, including:
- adverse changes in the payment status of investees in the portfolio, or
- national or local economic conditions that correlate with defaults on the assets in the portfolio.

1.11 Foreign currency translation

Functional and presentational currency

The financial statements are presented in Sterling, which is the Company's functional and presentational currency.

Transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional
currency rate of exchange ruling at the balance sheet date. All differences are recognised in the income
statement. Foreign exchange gains and losses resulting from the settlement of such transactions and from the

14
 CDB (U.K.) LIMITED

Notes to the financial statements continued

Accounting policies continued

1.11 Foreign currency translation (continued)

retranslation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement. Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured
at fair value in the foreign currency are translated using the exchange rates at the date when the fair value was determined

1.12 Taxation (current and deferred)

Current tax is the expected tax payable (shown as a liability) or the expected tax receivable (shown as an asset) on
the taxable income for the year adjusted for changes to previous years and is calculated based on the applicable tax
law in the United Kingdom. Deferred tax is provided using the balance sheet liability method on temporary differences
arising between the tax bases of assets and liabilities for taxation purposes and their carrying amounts in the
financial statements. Current and deferred taxes are determined using tax rates based on legislation enacted or
substantively enacted at the balance sheet date and expected to apply when the related tax asset is realised or the
related tax liability is settled,

Deferred tax is determined using tax rates based on legislation enacted or substantially enacted at the balance sheet
date and expected to apply when the deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets are recognised only to the extent that it is more likely than not that there is suitable taxable profits
from which the future reversal of the underlying timing differences can be deducted.

Deferred and current tax assets and liabilities are only offset where there is both the legal right and intention to settle on a
net basis, or to realise the asset and settle the liability simultaneously.

1.13 Significant accounting estimates and judgements

The reported results of the Company are sensitive to the accounting policies, assumptions and estimates that underlie
the preparation of its financial statements.

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect
the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and
expenses during the year. However, the nature of estimation means that actual outcomes may differ from those estimates.

The particular accounting policies adopted by the Company that are subject to estimates and judgements which would
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are as follows:

Impairment of investments
In the case of investments the Company has considered the decline in net asset values of subsidiaries to ascertain whether
any impairment has occurred. Impairment is recognised when there is objective evidence that a specific investment is
impaired. Evidence of impairment is assessed by reference to the underlying net assets of the subsidiary, and all other
available information. The determination of whether or not objective evidence of impairment is present requires the exercise
of management judgement.

15
CDB (U.K.) LIMITED

Notes to the financial statements continued

Accounting policies continued

1.13 Significant accounting estimates and judgements (continued)

Taxation
The taxation charge accounts for amounts due to fiscal authorities in the United Kingdom, and includes estimates
based on a judgement of future profits and the application of law and practice in certain cases in order to determine
the quantification of any liabilities arising. In arriving at such estimates, management assesses the relative merits
and risks of tax treatments assumed, taking into account statutory, judicial and regulatory guidance and, where
appropriate, external advice. Where the final tax outcome is different from the amounts that are currently recorded,
such differences will impact upon the current and deferred tax amounts in the period in which such determination is made.

1.14 Consolidation
Consolidated financial statements have not been prepared as the Company is a wholly owned subsidiary of a company
incorporated in the European Union under section 228 of the Companies Act 1985.

1.15 Prospective accounting changes

The Company has not applied the following new standards, amendments to standards and interpretations (IFRICs) that
have been adopted by the International Accounting Standards Board which would be applicable to the Company with an
effective date after the date of these financial statements :

IFRS 8 - Operating Segments;

Amendment to IAS 1 - Presentation of Financial Statements;
Amendment to IAS 23 - Borrowing Costs;
Amendment to IAS 32 - Financial Instruments: Presentation;
Amendment to IAS 39 - Financial Instruments: Recognition and Measurement - Eligible Hedged Items;

These will be adopted in future years and are not expected to have a material impact on the Company's results or
Financial Statements.

Additional standards to be adopted in the future are not listed here as they are not expected to be relevant to the results
in the future.

1.16 Segmental reporting

Business segments are distinguishable components of the Company that provide products or services that are subject
to risks and rewards that are different to those of other business segments. Geographical segments provide products and
services within a particular economic environment that are subject to risks and rewards that are different to those of
components operating in other economic environments.
 CDB (U.K.) LIMITED

Notes to the financial statements continued

2 Segmental reporting
The Company only has one geographical segment which for reporting purposes is the United Kingdom.

3 Interest and similar income 2008 2007

Interest on preference shares 5,131,954

Details of the dividend receivable on the preference shares, which is treated as interest income for IFRS, is set out in
Note 12 of these Financial Statements.

4 Interest and similar expense 2008 2007

£ £

Interest on intercompany loan to parent undertaking 25,452,911

Details of the terms of the loan from the parent undertaking is set out in Note 16 of these Financial Statements.

5 Investment income 2008 2007

Investment income 73

6 Foreign exchange gains 2008 2007

£ £

Foreign exchange revaluation on foreign currency assets 76,401,929

Revaluation on foreign currency assets represents the impact of a Japanese Yen financing arrangement, entered into in
May 2008 to enable the Company and certain subsidiaries to avail of tow cost financing on an aftertax basis at Yen
interest rates. The gains arise from the revaluation of the investment in the preference shares issued by Anglo Irish
Treasury Financing Limited. The gains to the Company on foreign exchange on this financing transaction are offset by
other foreign exchange losses in the period in various UK group companies of the parent undertaking, Anglo Irish Bank
Corporation Limited.

7 Impairment losses 2008 2007

£ £

Impairment of investment in subsidiaries 3,000,000

The impairment loss in the current year is the amount by which the carrying amount of the investment in Anglo Irish
Property Investors Limited, a subsidiary of CDB (U.K.) Limited, exceeds its recoverable amount. Asa result, the cost of
of the investment was written down to £Nil as detailed in Note 11 of these Financial Statements.

8 Directors' emoluments

No director received any emoluments from the Company (2007: none).

9 Profit before taxation

The audit fee is borne by the parent undertaking of the Company, Anglo Irish Bank Corporation Limited.

17
CDB (U.K.) LIMITED

Notes to the financial statements continued

Taxation 2008 2007

£ £
Current tax

Current year credit (7,370,735) (20,563)

Effective tax rate (14%) (28,168%)

The reconciliation of current tax on profit on ordinary activities at the standard corporation tax rate to the Company's
actual current tax credit is analysed as follows:

Profit before taxation 53,080,937 73

Profit on ordinary activities before taxation at 29% (2007: 30%) 15,393,472 22

Effects of:
Foreign exchange gains on Japanese Yen monetary asset (22,156,559) -

Preference dividend income (1,488,268) -

Transfer pricing adjustment - Sch28AA 10,620 (20,585)

Impairment losses 870,000 -

Total tax (7,370,735) (20,563)

Investment in subsidiaries - at cost 2008 2007

£ £
Subsidiaries at cost:
Anglo Irish Credit pic 5,946,710 5,946,710
Amblepath Properties Limited 10 10
Anglo Irish Asset Limited 74 74
Argyle Investment Finance Limited 1,000,000 2
Clickinput Limited 1 1
Finance 2000 pic 61,947 61,947
Anglo Irish Carry Partner Limited 1 1
Sutherland Finance and Leasing 82,597 82,597
Anglo Irish Finance Limited 100 3,500,000
Anglo Irish Asset Finance pic 220,000,000 220,000,000
Anglo Irish Commercial Properties (No.1) Limited 3,000,000 3,000,000
Anglo Irish Commercial Properties Limited 1,125,000 1,125,000
Anglo Irish Capital GP Limited 11,335,000 11,335,000
Anglo Irish Property Lending Limited 5,236,712 9,500
Anglo Irish Private Capital Limited 1 1
Anglo Irish Property Investors Limited 3,000,000 1
Anglo Irish Treasury Financing Limited 100 -

250,788,253 245,060,844

Impairment of investment in Anglo Irish Property Investors Limited (3,000,000) -

247,788,253 245,060,844
 CDB (U.K.) LIMITED

Notes to the financial statements continued

11 Investment in subsidiaries - at cost (continued)

The Company indirectly owns the entire issued share capital of Anglo Irish Leasing Limited, IFT Nominees Limited and
Berfors Nominees Limited through Anglo Irish Credit pic.

All companies and partnerships are registered in England and Wales.

All of the above investments are in Sterling except for the investment in Anglo Irish Capital GP Limited which
comprises ordinary shares of €12,500,000 and £2,750,000 (2007:€12,500,000 and £2,750,000).

Details of subsidiaries, ail of which are consolidated, and are registered in England and Wales are:

Principal Country of
Principal subsidiaries Holding activity incorporation

Anglo Irish Credit pic 100% Dormant Un ted Kingdom

Amblepath Properties Limited 100% Investment property Un ted Kingdom
Anglo Irish Asset Limited 74% Hire purchase/leasing Un ted Kingdom
Argyle Investment Finance Limited 100% Property Management Un ted Kingdom
Clickinput Limited 100% Investment Holding Company Un ted Kingdom
Finance 2000 pic 100% Investment Holding Company Un ted Kingdom
Anglo Irish Carry Partner Limited 100% Investment Holding Company Un ted Kingdom
Sutherland Finance and Leasing 100% Dormant Un ted Kingdom
Anglo Irish Finance Limited 100% Finance Un ted Kingdom
Anglo Irish Asset Finance pic 100% Commercial lending & Instalment Credit Un ted Kingdom
Anglo Irish Commercial Properties (No.1) Ltd 100% Investment Holding Company Un ted Kingdom
Anglo Irish Commercial Properties Limited 100% Investment Holding Company Un ted Kingdom
Anglo Irish Capital GP Limited 100% Investment Holding Company Un ted Kingdom
Anglo Irish Property Lending Limited 100% Commercial Finance Un ted Kingdom
Anglo Irish Private Capital Limited 100% Dormant Un ted Kingdom
Anglo Irish Property Investors Limited 100% Investment Holding Company Un ted Kingdom
Anglo Irish Treasury Financing Limited 100% Finance Un ted Kingdom

12 Investment in subsidiaries - monetary asset 2008 2007

£ £

Investment in Anglo Irish Treasury Financing Limited 1,060,844,285

This investment in Anglo Irish Treasury Financing Limited is in the form of preference shares. These preference shares are
variable rate cumulative preference shares of ¥10,000 each. The preferential dividend is calculated at the annual rate of
70% of the sum of the three month Yen LIBOR rate plus 0.875%. The following issuances were made in the period to
CDB (U.K.) Limited:

Date £ equivalent
5,065,483 shares of ¥10,000 each 7 May 2008 266,049,792
10,023,242 shares of ¥10,000 each 12 May 2008 526,441,693
5,011,621 shares of ¥10,000 each 13 May 2008 263,220,846
Preference shares 1,055,712,331

Interest receivable on preference shares 5,131,954

Total 1,060,844,285

19
 CDB (U.K.) LIMITED

Notes to the financial statements continued

13 Quoted Investments

The quoted investments matured during the year to 30 September 2008. They had a market value of £977 at
30 September 2007 and were listed on the London Stock Exchange.

14 Other assets 2008 2007

£ £

Amounts owed by group undertakings 1,363,725 65,378

Amounts owed by parent undertaking 8,585,635 -

Other receivables 977 -

9,950,337 65,378

Amounts owed by group undertakings and the parent undertaking are provided on an interest free basis with no
fixed terms of repayment.

15 Other liabilities 2008 2007

£ £

Sundry liabilities 136

Deferred consideration 1.227,214
1,227,350

This deferred consideration arises from the original acquisition of Anglo Irish Property Lending Limited. Of
this liability £565,224 was paid since September 2008. A further £679,634 provision has not been recognised
as a liability as the likelihood of the future liability occurring is not considered probable.

16 Loans and borrowings 2008 2007

£ £
Amounts Falling Due Within One Year:
Amounts owed to parent undertaking 986,655

Amounts Falling Due After One Year:

Amounts owed to group undertaking 107,213 107,213
Amounts owed to parent undertaking 1,004,763,314
1,004,870,527 1,093,868

Amounts owed to parent undertaking after one year, are provided by Anglo Irish Bank Corporation Limited -
London Branch (AIBC). The facilities are provided by AIBC to enable the Company to fund its investment in
Anglo Irish Treasury Financing Limited and bears interest at Yen libor plus a margin.

The amount owing to group undertaking longer than a year is provided by CDB Investments Limited, and is
interest free, with no fixed terms of repayment.

20
 CDB (U.K.) LIMITED

Notes to the financial statements continued

17 Cash flow statement 2008 2007

£
Non-cash items
Net (increase) in prepayments and accrued income (73)
Group relief to group undertakings 1.363,726
Impairment losses 3,000,000
4,363,726 (73)

Cash and cash equivalents 2008 2007

£ £

Amounts owed by parent undertaking 8,585,635

As at 30 September 8,585,635

18 Share capital 2008 2007

£ £
Authorised
200,000,000 Ordinary shares of £1 each 200,000,000 200,000,000
12,500,000 Ordinary shares of €1 each 8,585.000 8.585,000
50,000,000 £1 Redeemable Participating Preference shares 50,000,000 50,000,000

258,585,000 258,585,000"
Allotted, called and fully paid
199,749,995 Ordinary shares of £1 each 199,749.995 191,750,000
12,500,000 Ordinary shares of €1 each 8,585,000 8,585,000
45,450,000 £1 Redeemable Participating Preference shares 45,450,000 45,450.000

253,784,995 245,785,000

On 26 September 2008, 7,999,995 ordinary shares of £1 each were issued at par and subscribed by Anglo
Irish Bank Corporation Limited.

Events after the 8a/ance Sheet date

On 10 October 2008 the sterling authorised share capital of the Company was increased to £750,000,000 by the
creation of 500,000,000 ordinary shares of £1 each.

On 18 November 2008 the sterling authorised share capital was increased to £3,750,000,000 divided into
3,700,000,000 ordinary shares of £1 each and 50,000,000 redeemable preference shares of £1 each. On the
18 November 2008, 1,000,000,000 ordinary shares of £1 each were issued at par and subscribed by Anglo
Irish Bank Corporation Limited, the parent company.

21
 CDB (U.K.) LIMITED

Notes to the financial statements continued

19 Risk management and control

The Company is subject to a variety of risk and uncertainties in the normal course of its business activities. The
principal risk and uncertainties facing the Company relate to credit risk on its monetary asset and investments in
subsidiaries, liquidity risk for payment obligations on its loans and borrowings and market risk arising from the
structure of the balance sheet. The other risks facing the Company are compliance and operational risks.

In order to effectively minimise the impact of these risks, the directors place reliance on the group processes of
the various committees and control functions of the parent, Anglo Irish Bank Corporation Limited ("AIBC"). tn
particular, the AIBC Risk and Compliance Committee oversees risk management and compliance covering credit,
market, liquidity and operational risk. The directors of AIBC and the Company delegate their monitoring and control
responsibilities to the AIBC Group Credit Committee for credit matters and to the AIBC Group Asset and Liability
Committee ("AIBC ALCO") for market risk and liquidity risk matters. The members of these committees include
senior management and non-executive directors from throughout the AIBC Group and are supported by a
dedicated AIBC Group Risk management function ("AIBC Group Risk Management").

AIBC Group Risk Management, finance and internal audit are central core functions of the AIBC Group, independent
of line management, whose roles include monitoring the Company's activities to ensure compliance with financial
and operating controls. The general scheme of risk management, financial control and operational control is
designed to safeguard the Company's assets while allowing sufficient operational freedom for the business units
to earn a satisfactory return for shareholders.

Credit risk
Credit Risk is the risk that the Company will suffer financial loss from a counterparty failure to pay interest, repay
capital or meet a commitment. The Company's primary financial asset is an investment in the preference shares of
Anglo Irish Treasury Financing Limited, for which it receives dividend income. Other financial assets are non - quoted
investments in subsidiaries. The Company is therefore only exposed to the credit risk of other group companies of
Anglo Irish Bank Corporation Limited.

Risk concentration:
As the Company's primary investment is in Anglo Irish Treasury Financing Limited, a fellow group subsidiary of
CDB (UK) Limited, the Company does not have an exposure to any other underlying industry or geographic sectors
other than the financial services and real estate investment sectors.

Maximum exposure to credit risk: 2008

On Balance Sheet £
Investment in subsidiaries - at cost 247,788,253
Investment in subsidiaries - monetary asset 1,060,844,285
Other assets 9,950,337
Total 1,318,582,875

Market risk
Market risk is the potential adverse change in income or the value of the net worth arising from movements in
interest rates, foreign exchange rates or other market prices. Market risk arises from the structure of the balance sheet.
Market risk primarily arises from exposure to changes in interest rates and foreign exchange rates.

The Company's primary financial asset is denominated in Japanese Yen. The following table summarises the foreign
exchange exposure of the Company. The Company incurs foreign exchange risk on the Japanese Yen financing
arrangement which is set off against gains across various UK group companies which are integral to the overall
operation of this transaction which is beneficial to the results of the UK group.

22
 CDB (U.K.) LIMITED

Notes to the financial statements continued

19 Risk management and control (continued)

Currency balance sheet

GBP JPY Total
£ £ £
Assets
Investment in subsidiaries - cost 247,788,253 247,788,253
Investment in subsidiaries - monetary assets 1,060,844,285 1,060,844,285
Other assets 9,950,337 9,950,337
Prepayments and accrued income 281 281
Total assets 257,738,871 1,060,844,285 1,318,583,156

Liabilities
Loans and borrowings 1,004,870,527 1,004,870,527
Other liabilities 1,227,350 1,227,350
Total liabilities 1,006,097,877 1,006,097,877

Shareholder's equity
Share capital
Retained profits
Shareholders' funds 312,485,279 312,485,279
Total shareholders' equity and liabilities 1,318,583,156 1,318,583,156

This table is not provided for 2007 as all assets and liabilities were denoted in GBP.

The Company's financial assets and liabilities have interest rates that reset at the same time and under the same basis,
thus eliminating interest rate risk in the Company. Consequently there is no interest rate sensitivity analysis performed.
An interest rate re-pricing table is provided in Note 20 of these Financial Statements.

23
 CDB (U.K.) LIMITED

Notes to the financial statements continued

19 Risk management and control (continued)

Liquidity risk
Liquidity risk is the risk that the Company does not have sufficient financial resources available at all times to meet
its contractual and contingent cashflow obligations or can only secure these resources at excessive cost.

Liquidity risk is measured using the cash flow mismatch approach where cash inflow and outflow are analysed to
produce a net cash flow position over set time periods.

The following tables present the cash flows payable by the Company under financial liabilities by remaining contractual
maturities at the balance sheet date.

Over three Over one

months but year but
Not more not more not more Over
than three than one than five five
months year years years Total
£ £ £ £ £
Financial liabilities
Loans and borrowings 25,452,911 - 101,811,644 1,004,870,527 1,132,135,082
Other liabilities - 565,224 661,990 - 1,227,214
Total financial liabilities 25,452,911 565,224 102,473,634 1,004,870,527 1,133,362,296

Undated loans and borrowings have been included in amounts maturing over 5 years.

The Company did not have any financial liabilities in 2007.

Operational risk
Operational risk represents the risk that failed or inadequate processes, people or systems, or exposure to external
events could result in unexpected losses. The risk is associated with human error, systems failure, and inadequate
controls and procedures. Due to the limited nature of the Company's activities it is difficult for the Company to
suffer an operational error.

The management of operational risk is monitored by the Board of Directors.

Compliance risk
The Board of Directors are responsible for ensuring that the Company is compliant with all relevant laws and good
practice guidelines. Non compliance can give rise to reputational loss, legal or regulatory sanctions or material
financial loss.

The Risk and Compliance Committee of the main board of Anglo Irish Bank Corporation Limited, the parent
undertaking, has oversight of all compliance issues for the Anglo Irish Bank Corporation Limited group, including
this Company.

Compliance is charged with defining and identifying regulatory and compliance risks and developing a compliance
programme for the Company that includes the implementation and review of specific policies and procedures,
compliance monitoring and education of staff on regulatory and compliance matters.

24
 CDB (U.K.) LIMITED

Notes to the financial statements continued

19 Risk management and control (continued)

Capital management
The objectives of the Company's capital management policy are to efficiently manage the capital base to
optimise the return of the Company.

The responsibility for capital adequacy rests with the directors. The directors manage the capital structure and
make adjustments to it in light of changes in economic conditions or changes in the risk profile of assets.

The capital ratio at 30 September was as follows:

2008 2007
£ £

Total equity 312,485,279 244,033,612

Capital 312,485,279 244,033,612

Total Debt 1,004,870,527 1,093,868

Debt: Equity ratio 3.22 0.00

Total capital has grown during the year due to retention of profits. The capital ratio has increased as a result of the
increase in debt, which increased during the year due to facilities provided by Anglo Irish Bank Corporation Limited
to enable the Company to fund the acquisition of preference shares in Anglo Irish Treasury Financing Limited.

In order to strengthen the capital position of the Company, on 18 November 2008, the issued share capital of the
Company was increased by £1,000,000,000. Further details are provided in Note 18 of these Financial Statements.

25
 CDB (U.K.) LIMITED

Notes to the financial statements continued

20 Interest rate repricing 30 September 2008

Over three Over six Over one

months but months but year but
Not more not more not more not more Over Non
than three than six than one than five five interest
months months year years years bearing Total
£ £ £ £ £ £ £
Assets
Investment in subsidiaries - cost 247,788,253 247,788,253
Investment in subsidiaries - monetary
assets 1,060,844,285 1,060,844,285
Other assets 9,950,337 9,950,337
Prepayments and accrued income - - 281 281
Total assets 1,060,844,285 - 257,738,871 1,318,583,156

Liabilities
Loans and borrowings (1,004,763,314) (107,213) (1,004,870,527)
Other liabilities - (1,227,350) (1,227.350)
Total liabilities (1,004,763,314) (1,334.563) (1,006,097,877)

Shareholders' equity
Share capital (253,784,995) (253,784,995)
Retained profits (58,700,284) (58,700,284)
Total shareholders' equity (312,485,279) (312,485,279)

Interest rate repricing gap 56,080,971 (56,080,971)

Cumulative interest rate repricing

gap 56,080,971 56,080,971 56,080,971 56,080,971 56,080.971

26
 CDB (U.K.) LIMITED

Notes to the financial statements continued

20 Interest rate repricing (continued) 30 September 200

Over three Over six Over one

months but months but year but
Not more not more not more not more Over Non
than three than six than one than five five interest
months months year years years bearing Total
£ £ £ £ £ £ £
Assets
Investment in subsidiaries - cost 245,060,844 245,060,844
Investment in subsidiaries - monetary
assets
Quoted investments 977 977
Other assets 65,378 65,378
Prepayments and accrued income 281_ 281
Total assets 977 245,126,503 245,127,480

Liabilities
Loans and borrowings (1,093,868) (1,093,868)
Other liabilities
Total liabilities (1,093,868) (1,093,868)

Shareholders' equity
Share capital (245,785,000) (245,785,000)
Retained profits 1,751,388 1.751,388
Total shareholders' equity (244,033,612) (244.033,612)

Interest rate repricing gap 977 (977)

Cumulative interest rate repricing gap g77 977 977 977 977

27
 CDB (U.K.) LIMITED

Notes to the financial statements continued

21 Maturity profile 30 September 2008

Over three Over one

months but year but
Not more not more not more Over
than three than one than five five
Demand months year years years Total
£ £ £ £ £ £
Financial Assets

Investment in subsidiaries - cost 247,788,253 247,788,253

Investment in subsidiaries - monetary
assets 1,060,844,285 1,060,844,285
Other assets 9,950,337 9,950,337
Total assets 1,318,582,875 1,318,582,875

Financial Liabilities
Loans and borrowings 1,004,870,527 1,004,870,527
Other liabilities 565,224 661,990 1,227,214
Total liabilities 565,224 661,990 1,004,870,527 1,006,097,741

The above table breaks down the Company's financial assets and liabilities by remaining contractual maturity. The maturity profile for those assets and liabilities defined as 'financial'
has been determined in accordance with groupings that are considered most appropriate for those particular assets and liabilities.
Undated loans and borrowings and investments in subsidiaries have been included in amounts maturing over 5 years.

28
 CDB (U.K.) LIMITED

Notes to the financial statements continued

21 Maturity profile (continued) 30 September 200

Over three Over one

months but year but
Not more not more not more Over
than three than one than five five
Demand months year years years Total
£ £ £ £ £ £
Financial Assets

Investment in subsidiaries - cost 245,060,844 245,060,844

Investment in subsidiaries - monetary
assets
Quoted investments 977 977
Other assets 65,378 65,378
Total assets 977 245,126,222 245,127,199

Financial Liabilities
Loans and borrowings 986,655 107,213 1,093,868
Other liabilities
Total liabilities 986,655 107,213 1,093,868

The above table breaks down the Company's financial assets and liabilities by remaining contractual maturity. The maturity profile for those assets and liabilities defined as 'financial'
has been determined in accordance with groupings that are considered most appropriate for those particular assets and liabilities.
Undated loans and borrowings and investments in subsidiaries have been included in amounts maturing over 5 years.

29
 CDB (U.K.) LIMITED

Notes to the financial statements continued

22 Parent Company
The Company is incorporated in England and Wales and is a wholly owned subsidiary of Anglo Irish Bank Corporation
Limited, a company incorporated in the Republic of Ireland. The company's financial statements have been consolidated
only in the group financial statements of the parent company and a copy of these financial statements are available
from Anglo Irish Bank Corporation Limited, Stephen Court, 18/21, St. Stephen's Green, Dublin 2, Ireland.

23 Related party transactions

The parent undertaking of the Company, Anglo Irish Bank Corporation Limited ("AIBC"), has provided loans to the
Company. The balance on these loans is £1,004,763,314 (2007: £986,655).The Company incurred interest on the loan
provided by AIBC of £25,452,911 (2007: £nil), Details of the terms of this loan are given in Note 16 of these Financial
Statements. CDB Investments Limited has also provided loans to the Company of £107,213 (2007:£107,213). The
Company provided loans to other group entities and the parent company. The balance on these loans is
£9,949,360 (2007: £65,378).

24 Events after the Balance Sheet date

Nationalisation of parent company

On 15 January 2009, the Irish Government announced its intention to take Anglo Irish Bank Corporation pic ("AIBC"),
the parent undertaking of the Company, into State ownership. AlBC's shares were subsequently suspended from
trading on the Irish and London Stock Exchanges on 16 January 2009. The Anglo Irish Bank Corporation Act 2009
which provided for the transfer of shares of AIBC to the Irish Minister for Finance, was signed into Irish law on
21 January 2009. On the same date AIBC was re-registered as a private company and its name was changed from
Anglo Irish Bank Corporation pic to Anglo Irish Bank Corporation Limited. On 29 June 2009, the Irish Government,
following receipt of European Union approval, has provided €3 billion of capital to AIBC. Further capital of up to €1 billion
is available subject to further discussions between AIBC and the Department of Finance on the terms of a debt
repurchase programme with AIBC.

Share capital
On 10 October 2008 the sterling authorised share capital of the Company increased to £750,000,000 by the creation of
500,000,000 ordinary shares of £1 each,

On 18 November 2008 the sterling authorised share capital increased to £3,750,000,000 divided into 3,700,000,000
ordinary shares of £1 each and 50,000,000 redeemable preference shares of £1 each. On 18 November 2008,
1,000,000,000 ordinary shares of £1 each were issued at par and subscribed by Anglo Irish Bank Corporation Limited,
the parent undertaking of the Company.

Impairment of investment in subsidiaries

The key economics indicators in the UK and mainland Europe, which are the principal operating markets of the
Company's subsidiaries or is the location of the underlying assets supporting these entities, have continued to show a
marked deterioration since 30 September 2008. These economies are expected to contract further in 2009. Whilst
the monetary and fiscal actions taken by the government and authorities are helpful, it will take some time before any
improvements as a result of monetary actions are reflected. As a result, the Company anticipates that there may be
a risk that further impairment charges on investments in subsidiaries may be incurred in 2009 and subsequent years.

Investment in Anglo Irish Asset Finance pic

On 18 November 2008 the Company invested a further £1,000,000,000 into Anglo Irish Asset Finance pic, divided into
1,000,000,000 ordinary shares of £1 each.

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 CDB (U.K.) LIMITED

Notes to the financial statements continued

24 Events after the Balance Sheet date (continued)

Japanese Yen financing arrangement

Details are given in Note 6 of these Financial Statements, of a financing arrangement, entered into in May 2008.
The arrangement was structured such that the UK group would benefit from the differential between Sterling and Yen
interest rates. The potential downside from a foreign exchange risk was mitigated by an offset on the UK group's
taxation line. The arrangement had a positive impact on the UK group's profit for the year ended September 2008
The arrangement matured in December 2008 and January 2009. As part of this maturity, a Japanese Yen loan of
¥201 billion was advanced from Anglo Irish Asset Finance pic to the Company. The strengthening of Yen against
Sterling post year end has had a net positive impact on foreign exchange revaluation on this Japanese Yen loan and
the Japanese Yen preference shares held by the Company of £455m.

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